Lecture 11 - Social Security
recorded by: Yale University
published: March 17, 2012, recorded: October 2009, views: 2805
released under terms of: Creative Commons Attribution No Derivatives (CC-BY-ND)
Download yalemecon251f09_geanakoplos_lec11_01.mp4 (Video - generic video source 824.8 MB)
Download yalemecon251f09_geanakoplos_lec11_01.flv (Video 361.8 MB)
Download yalemecon251f09_geanakoplos_lec11_01_640x360_h264.mp4 (Video 216.5 MB)
Download yalemecon251f09_geanakoplos_lec11_01.wmv (Video 327.2 MB)
Report a problem or upload filesIf you have found a problem with this lecture or would like to send us extra material, articles, exercises, etc., please use our ticket system to describe your request and upload the data.
Enter your e-mail into the 'Cc' field, and we will keep you updated with your request's status.
This lecture continues the analysis of Social Security started at the end of the last class. We describe the creation of the system in 1938 by Franklin Roosevelt and Frances Perkins and its current financial troubles. For many Democrats, Social Security is the most successful government program ever devised and for many Republicans Social Security is a bankrupt program that needs to be privatized. Is there any way to reconcile the views of Democrats and Republicans? How did the system get into so much financial trouble? We will see that the mess becomes quite clear when examined with the proper present value approach. Present value analysis reveals the flaws in the three most popular analyses of Social Security, that the financial breakdown is the fault of the baby boomers, that privatization would bring young investors a better return than they anticipate getting from their social security contributions, and that privatization is impossible without compromising today's retired workers.
Link this pageWould you like to put a link to this lecture on your homepage?
Go ahead! Copy the HTML snippet !